Glover and Booze v. Ocwen Loan Servicing, LLC
The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from collecting “any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.” 15 U.S.C. § 1692f(1). The CFPB and Federal Trade Commission filed an amicus brief arguing that this provision bars debt collectors from collecting pay-to-pay or “convenience” fees—fees imposed for making a payment online or by phone—unless the agreement creating the debt expressly authorizes such fees, or a law affirmatively authorizes them.
First, the brief argues that Section 1692f(1) applies to pay-to-pay fees because they are “amounts” covered by the provision and a debt collector “collects” them. Second, the brief argues that Section 1692f(1)’s permitted by law prong applies only when a law affirmatively authorizes the collection of an amount. Separate agreements to charge pay-to-pay fees do not satisfy Section 1692f(1)’s “permitted by law” prong because the FDCPA allows debt collectors to collect amounts pursuant to only one type of agreement—the agreement creating the debt. And, contrary to the debt collector’s arguments in this case, neither the Truth in Lending Act nor the Electronic Transfer Act authorizes debt collectors to collect pay-to-pay fees.